The growing popularity of livestreaming apps in China points to social e-commerce as the new e-commerce. Here’s why the KOL-to-sales interest model works.
After a long day, you settle in with your phone in hand, finally at the best part: opening your favorite livestreaming app and tuning into your favorite host as they present beauty products and luxury items galore. The flow of the livestream has become a comforting and recognizable part of Chinese netizens’ daily routine. So much so, that livestreaming in China is now a billion-dollar industry that is only skyrocketing in growth, both in the diversity of content and number of viewers.
During repeated lockdowns, consumers are flocking to their screens to see their favorite KOLs — from local micro-influencers to big-name Chinese celebrities — share product reviews and brand recommendations. Accessible to almost anyone with a mobile device, livestreaming e-commerce offers a highly interactive and personable presentation alongside promises of exclusive deals.
From performance art exhibitions, to video games, to one-on-one luxury consultations, more and more companies are tapping into livestreaming’s e-commerce potential. Even platforms like New Oriental, a largely content-driven company featuring educational English, history, and cultural lessons, is turning an eye towards beauty products as part of their e-commerce branch. Outside of China, Amazon, Facebook, and Instagram have also launched their own livestreaming and selling platforms.
As this digital trend continues to boom, social e-commerce may become the new e-commerce. After all, the gross merchandise value (GMV) of the livestreaming e-commerce industry is set to surpass 2.8 trillion RMB (roughly 438 billion USD) in 2022 and a whopping 4.9 trillion yuan (732.8 billion USD) in 2023. With algorithm-driven short-video apps dominating the online advertising space, here’s what luxury brands need to know about the top four livestreaming platforms in China. Continue to read the full article here